2A- Managing Quality

what is quality?
the ability of a product or service to meet customer needs
What are three reasons why quality is important?
1. Company reputation
2. Product liability
3. Global implications
The US established what award for quality achievement?
Malcolm Baldridge National Quality Award
The Japanese have a similar award, what is it called?
The Deming Prize after American Dr. W. Edwards Deming
What is the single quality standard today?
ISO 9000
What is ISO 9000?
it is the quality standard with international recognition. It is developed by the International Organization for Standardization
What are the 8 quality management principles?
1. top management leadership
2. customer satisfaction
3. continual improvement
4. involvement of people
5. process analysis
6. use of data driven decision making
7. a systems approach to management
8. mutually beneficial supplier relationships
The old standard ISO 9004 did what?
it emphasized how an organization can use a quality management approach to achieve sustained success
Dimensions of Quality (goods) -David Garvin
special features
perceived quality
service after sale
Dimensions of Quality (service)
service reliablity
What various factors is quality based on?
all of the ones mentioned above

includes understanding of expectations and implies an agreement (explicit or implicit)

What are the four factors that are determinants of quality?
conformance to the design
east of use
service after delivery
Frederick Taylor
Walter Shewhart
Walter Shewhart (1924) combined his knowledge of statistics with the need for quality control and provided the foundations for statistical sampling in quality control.

-developed statistical control charts
-mentored deming
-PDCA cycle (shared with Deming)
-identified 2 causes of variation: chance and assignable

-_________ introduced the control chart to better understand process variations.

H.G. Romig and Harold Dodge
Bell System
-acceptance sampling tables
W. Edwards Deming
-trained in engineering, mathematics, and physics
-physics professor, U.S. Census Bureau, USDA, consultant
-Taught SQC to Japansese QC people
-PDCA cycle (shared with Shewhart)
-honored by Japanese proze in his name
Who created the 14 points based system and what were they?
-constancy of purpose
-continual improvement
-profound knowledge
appreciation for a system
a theory of variation
a theory of knowledge
Joseph M. Juran
-lectured in Japan
-authored/edited Quality Control Handbook
-Built on Pareto concept
-Quality Trilogy concept:
1. quality planning
2. quality control
3. quality improvement

-leader of quality revolution in japan with Deming

He believed that quality begins with defining customer needs. He proposed that once customer needs were identified, they should be translated into the language of the business in order to deliver a product or service that met needs of both customer and the business. He developed a triology.

Armand Feigenbaum (GE, General Systems Company )
-cost of nonconformance
-total quality control concept
authored Total Quality Control
-40 steps in quality principles
1. TQC is system for integraion
2. Standards, appraisal, corrective action
3. Technological and human factors
4. 4 categories of quality costs
5. Control quality at the source
Philip Crosby
-Zero Defects
-Authored Quality is Free, Quality without Tears
-Started Quality College (multiple sites)
-company teams trained
-emphasized behavioral change
Kaoru Ishikawa
-Quality Circles
-7 basic tools of quality
-cause and effect (fishbone or ishikawa) diagram
-promoted statistical methods
-recognized internal customer
-conceived company wide quality control
Genichi Taguchi
-emphasized variation reduction
-taguchi loss function
Shigeo Shingo
-not focused on quality but had significant impact
-setup standardization
-poka yoke
-source inspection systems
Deming Prize
-Awarded by Union of Japanese Scientists and Engineers
-first awarded in 1951
-named after Edwards Deming
Malcolm Baldrige Award
-Awarded by US Department of Commerce
-1987 legislation
-Named after Malcolm Baldrige
European Quality Award
-Award for “organizational excellence”
-Originally one per year
-Now several categories
Other awards
Most developed nations have some form of Quality awards or prizes
Values of Awards and Prizes
-Shows effort
-Largely dependent on money spent
-Used in advertising
-Doesn’t reflect customer view
Current ISO Standards
ISO 9000: quality management
ISO 14000: environmental management
ISO 19011: guidelines on quality and or environmental management systems auditing
ISO registration
Whats been good
-focus on quality
-demonstrates effort

Whats been bad
-mostly fixed in ISO 9000:2000
-became mechanical
-emphasized conformance to documentation, not meeting quality
-didnt include customer view

Quality Today
-Reflects a blend of concepts and contributions from the “pioneers” (“gurus”)
-Stresses organization-wide TQM
-Emphasizes the role of the front-line worker (authority and responsibility)
-Seeks to recognize achievement through prizes and certification
Cost of Quality (COQ)
what are the four major categories of costs as associated with quality?
1.Prevention costs: costs associated with reducing the potential for defective parts or services
-training, quality improvement programs
2. Appraisal costs: costs related to evaluating products, processes, parts and services
-testing, labs, inspectors
3. internal failure: costs that result from production of defective parts or services before delivery to customers
-rework, scrap, downtime
4. external faiure: costs that occur after delivery of defective parts or services
-rework, returned goods, liabilites, lost goodwill, costs to society
-harder of the four to be estimated
TQM Approach
-It refers to a quality emphasis that encompasses the entire organization from supplier to customer
-Know customer requirements and wants
-Design a product to delight the customer
-Design a process to do the job right (the first time and) every time
-Apply fail-safing techniques (“poka-yoke” devices)
-Monitor and record results for improvement ideas
-Work with suppliers and customers
-Edwards Deming used 14 points to indicate how he implemented TQM
Poka-Yoke (Mistake Proofing)
-Developed by Shigeo Shingo, a source inspection
-An approach for mistake-proofing processes using automatic devices or methods to avoid simple human or machine error, such as forgetfulness, misunderstanding, errors in identification, lack of experience, absentmindedness, delays, or malfunctions
Other TQM Points
Continual improvement (“kaizen”)
Competitive benchmarking
Employee enablement
Use of teams
Extension to suppliers
Traditional vs. TQM cultures
Continous Improvement
-Walter Shewhard created a circular model called PDCA/PDSA (plan do check act) as his version of continuous improvment
-Deming took that concept to Japan later
-the Japanese use the word Kaizen to describe this ongoing process
Ishikawa’s Seven Basic Tools Of Quality
Process flowcharts
Check sheets
Scatter diagrams
Pareto analysis (charts)
Cause-and-effect diagrams (Ishikawa/Fishbone)
Control charts
Run charts
-Shows unexpected complexity, problem areas, redundancy, unnecessary loops, and where simplification may be possible
-Compares and contrasts actual versus ideal flow of a process
-Allows a team to reach agreement on process steps and identify activities that may impact performance
-Serves as a training tool
Check Sheet
-it is any kind of form designed for recording data
-Creates easy-to-understand data
-Builds, with each observation, a clearer picture of the facts
-Forces agreement on the definition of each condition or event of interest
-Makes patterns in the data become
obvious quickly
Scatter Diagram
-shows the relationship between two measurements
-Supplies the data to confirm a hypothesis that two variables are related
-Provides both a visual and statistical means to test the strength of a relationship
-Provides a good follow-up to cause and effect diagrams
-Displays large amounts of data that are difficult to interpret in tabular form
-Shows centering, variation, and shape
Illustrates the underlying distribution of the data
-Provides useful information for predicting future performance
-Helps to answer the question “Is the process capable of meeting requirements?
Pareto Diagram
-Helps a team focus on causes that have the greatest impact
-Displays the relative importance of problems in a simple visual format
-Helps prevent “shifting the problem” where the solution removes some causes but worsens others
-A histogram, ordered by frequency of occurrence, that shows how many results were generated by each identified cause
-A Quality Control technique used to rank importance of a problem based on its frequency of occurrence over time. This diagram is based on the Pareto principle, more commonly referred to as the 80/20 rule, which says that the majority of defects are caused by a small set of problems.
Cause and Effect Diagram
-a schematic technique used to discover possible location of quality problemsEnables a team to focus on the content of a problem, not on the history of the problem or differing personal interests of team members
-Creates a snapshot of collective knowledge and consensus of a team; builds support for solutions
-Focuses the team on causes, not symptoms
-iskikawa or fish-bone chart
Control Chart
-Focuses attention on detecting and monitoring process variation over time
-Distinguishes special from common causes of variation
-Serves as a tool for on-going control
-Provides a common language for discussion process performance
Run Chart
-Monitors performance of one or more processes over time to detect trends, shifts, or cycles
-Allows a team to compare performance before and after implementation of a solution to measure its impact
-Focuses attention on truly vital changes in the process
Process Improvement Sequence
Management responsibility

-Develop process improvement plan
-Determine process or area to examine
-Form and train Process/Quality Improvement Team

*Team: use coarse tools
Process flowchart
-Check sheets and histograms
-Pareto analysis <--- (iterative -Fishbone chart ---> steps)

*Team: use fine tools
-Process control charts
-Run diagrams
-Scatter diagrams

-Determine process changes
-Implement pilot process improvement
-Measure and evaluate results
-Repeat if results unsatisfactory; deploy full implementation if results satisfactory

-Also known as the Deming wheel, or Deming/Shewhart cycle or wheel
-4 parts to the cycle
Plan – document and analyze
Do – implement “improvement”
Check (or Study) – compare to desired state
Act-correct or standardize
Quality Circles vs QITs
Quality Circles
-Limited authority
-Focus within department
-Often seen as added work

Quality Improvement Teams
-Greater authority
-Focus on total process
-Recognized as important part of job
-End when process improvement complete

Six Sigma
-Latest popular approach to Quality
± 6 standard deviations (6) from the process mean = 0.0003% defects
-Represents a goal
-Certification from ASQ on processes to support Six Sigma
-Many consulting and training firms on how to implement Six Sigma
Six Sigma Evolution
-Started as a simple quality metric at Motorola in 1986 (Bill Smith)
-Concept migrated to Allied Signal
(acquired Honeywell and took its name)
-Picked up by General Electric
-Commitment by CEO Jack Welch in 1995
-Grown to be an integrated strategy for attaining extremely high levels of quality
What is Six Sigma?
-Sigma () is a Greek letter used to
designate a standard deviation (SD) in statistics
-Six refers to the number of SD’s from the specialized limit to the mean.
-Six sigma is a fairly recent umbrella approach to achieve quality
-a program designed to reduce defects to help lower costs, save time, and improve customer satisfaction.
Statistics- DPU
-Six Sigma: “any mistake or error passed on to the customer” ???
-General view: any variation from specifications

DPU (defects per unit)
-Number of defects per unit of work
-Ex: 3 lost bags ÷ 8,000 customers
= .000375

Statistics – dpmo (defects per million opportunities)
Process may have more than one opportunity for error (e.g., airline baggage)
dpmo = (DPU × 1,000,000) ÷
opportunities for error
Ex: (.000375)(1,000,000) ÷ 1.6 = 234.375
or (3 lost bags × 1,000,000) ÷ (8,000 customers × 1.6 average bags)
= 234.375
employee empowerment
involving employees in every step of the production process
what is a quality circle?
a group of employees who meet regularly to solve work-related problems
Just in Time (JIT)
-continuing improvement and enforced problem solving. they are designed to produce and deliver goods just as they are needed.
-It cuts the cost of quality
-improves quality
-Better quality means less inventory and a better, easier-to-employee JIT system
who introduced three concepts that aimed at improving both product and process quality?
Genichi Taguchi
What were the three concepts?
quality robust
quality loss function
target oriented quality
quality robust
Products are products that can be produced uniformly and consistently in adverse manufacturing and environmental conditions
quality loss function
identifies all costs connected with poor quality and shows how these costs increase as the product moves away from being exactly what the customer wants
target oriented quality
a philosophy of continuous improvement to bring the product exactly on target

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